AGENCY AGREEMENT
This is an agreement between:
[Insert Company Details here]
And
[Insert Company Details here]
On the [Insert Date]
This Agreement covers in general the operation among WFN Members and is signed by the
relevant WFN Members.
To jointly promote and develop Freight Forwarding and other associated Logistics services
among all [Insert Company Name] worldwide agents’ network countries and to perform all
services customarily associated thereto.
That in consideration of the mutual convenience and agreement herein after set forth, [Insert
Company Name here] appoints [Insert Company Name here] as its Non-Exclusive Agent in
[Country], whereas [Insert Company Name here] appoints [Company Name] as its Non
Exclusive Agent in [Country] for the purpose set forth.
Where the regulation of a country conflicts with parts of this agreement, then the legislation of
such country takes preference.
Terms and Conditions: 1. Purpose
This agreement shall be to develop, expand and promote the business of Sea and Air
transportation modes between [Insert Company Name here] and [Insert Country]
under a joint collaboration of both parties
2. Geographical Perimeters
Both companies agree to cooperate with each other for their mutual benefits in order to
develop freight movements for their customers in various worldwide destinations, origins
and vice versa. This agreement will cover all aspects of services offered by both
companies in their respective countries.
3. Exclusivity
Both parties agree to work with each other on a Non Exclusive basis. This agreement will
be reviewed one year from the date of agreement.
4. Responsibilities
Both parties shall take responsibilities of all Sea and Air arrangements including
documentation, advancements of freight charges, and undertake the obligations to stage
a strong canvassing campaign in order to promote this joint development.
Both parties shall assist in the collection of any charges due to the other party and settle
all incurred expenses on behalf of either party and reserves the rights of billing such
charges to the other party. However, it is understood that each party shall bear its own
expenses incurred in connection with the execution of this arrangement including
traveling, entertainment all modes of communications and other incidental expenses.
Any uncollected funds shall be the sole liability of the party releasing the cargo and
extending credit arising from payments of all charges prior to the release of goods. In
addition, any consignment is released by the handling agent in destination not against
either endorsed relevant Original bills of Lading or Bank’s Letter of Guarantee, the
releasing agent will have to undertake the full liabilities unless such a release is approved
and instructed by the loading party beforehand.
If no credit term is agreed in advance, the releasing party shall have the right to request
the other party to remit full settlement in advance for the freight, transshipment charges
and other incurred expenses.
Shipping documents with no hold are to be made available to each party at least 48 hours
prior to vessel arrival. Failure to comply will result in the shipping party assuming
responsibility for any additional charges or fees.
5. Sales Promotions
Both parties will make proper effort to assist each other in the soliciting Freight
Forwarding by means of Sales Leads, Letters of Introduction, Routing Orders and
nominations.
6. Freight Rates
Both parties are to actively pursue, investigate and negotiate the best possible net freight
rates for each service level and to notify and offer these rates without addition to the other
party. Both parties have to give as much possible notice to the other of any knowledge of
pending rate changes.
7. Accounting and Settlement
Both parties will make all settlements within 30 days from date of invoice. No amount
shall be left unsettled for more than 90 days, and each party is responsible to send a
monthly statement of accounts for verifications purposes. Any amount not invoiced after
60 days shall be deemed void.
Each party will reimburse immediately for customs duty and GST [Taxes and Duties].
Each party to absorb their own currency losses and own Bank charges on remittance.
Each party to offer handling, free of any break-bulk charges.
8. Services
Both companies will offer mutually agreed services in the following areas
8.1 Inbound / Outbound Forwarding services
8.2 Door to door delivery services
8.3 Customs clearance or brokerage
8.4 Multi-modal transport documentation covering the above
9. Profit Sharing
All prepaid or collect shipments of [Insert Company Name here] or [Insert Company
Name here] there should be no profit sharing.
All profits from nomination by either party will be shared 50/50 profit.
10. Documentation
The load port agent will issue their normal transport documentation as approved by the
relevant International Transport authorities, which retains lien of cargo and discharge port
agent will ensure that goods are released only if this document is duly presented
11. Arbitration
All disputes arising in connection with agency agreement which the parties cannot settle
mutually shall be finally settled under the rules of conciliation and arbitration of the
International Chamber of Commerce by one or more arbitrators appointed in accordance
with the rules. Whatever both parties deem necessary and are not described in this
agreement, it shall be subject to discussions between both parties as and when required.
The written confirmation of such discussion shall constitute a part of this agency
agreement.
12. Governing Laws and Regulations
It is mutually understood that both parties will handle all cargo in accordance with all
Governing Carrier Rules, Regulations and Tariffs and with all Government laws and
Regulations of the respective countries. Both parties further understand and accept the
Standard Trading conditions of each other.
13. Amendments
It is agreed and understood that this agreements may from time to time, be subject to
additions of amendments as circumstances may dictate. Such additions of amendments
must be notified in the form of a written request to the other party, at the registered
address, and can only form a change or addition if agreed in writing by both parties.
14. Termination of Agreement [Upon 30 days notice]
Either party shall be entitled to terminate this agreement forthwith on the following events:
14.
Upon either parties discovery that the other has committed a fraudulent act or
acts in the nature of fraud upon it, or
14.1
Upon the commencement of the liquidation or bankruptcy of either party, or
14.2
Upon a breach by either party of any terms of this agreement
Should any party terminate the contract, both parties agree to render the other their final
statement of accounts within one [1] week of expiry of this Agreement, and to make
settlement under the terms as defined in this Agreement. Each party agrees specifically
not to claim compensation for administration or personnel costs if the other party
terminates this Agreement.
15. Confidentiality
This agreement shall be personal to each party and neither may assign or transfer any of
the obligations or benefits arising from it to any third party. Both parties agree to retain all
information relating to this Agreement and the business transacted by it confidential.
Both parties agree that should this Agreement be terminated by any of the events as
listed in 14.a – c of this Agreement: that the benefits arising from it in the form of
confidential business information are not an asset of the part upon whom this Agreement
has been terminated and therefore cannot be released or sold by the liquidator.
This agency agreement has been executed in duplicates, with one [1] copy of each party,
and both copies shall be deemed as originals.
IN WITNESS WHEREOF, the parties have hereunto subscribed their names and
signatures for legalisation on the day of [ Insert Date ]
For and on behalf of:
[Insert Company Name here]
___________________________________
Name:
Position:
Date:
&
For and on behalf of:
[Insert Company Name here]
___________________________________
Name:
Position:
Date: